US President Donald Trump has renewed his threat to impose tariffs on the European Union (EU), China, Canada and Mexico, citing trade imbalances and the flow of fentanyl into the US.
Trump announced a possible 10% duty on imports from China and a 25% tariff on Canada and Mexico by February 1, unless they control illegal immigration and drug smuggling, particularly fentanyl from China. He also criticized the EU for what he called “very, very unfair” trade practices and vowed to impose tariffs to ensure fairness.
Trump’s tariff threat comes amid ongoing trade tensions and a crackdown on immigration. He also signed a trade memorandum directing federal agencies to review the US trade deficit, unfair practices and currency manipulation by April 1, with proposals such as “global additional tariffs”. The move reflects Trump’s strategy of using tariffs as a negotiating tool.
China responded by expressing a willingness to maintain communication with the US to resolve differences and expand cooperation, while stressing that a trade war would not be profitable. Meanwhile, Mexico and Canada struck a conciliatory tone, with Mexican President Claudia Sheinbaum asserting sovereignty and committing to a step-by-step approach. She also said that the US-Mexico-Canada trade agreement, which governs $1.8 trillion in trade annually, would not be renegotiated until 2026.
US industry, particularly corn farmers, is concerned that tariffs could disrupt exports to Mexico and Canada, their main markets. Kenny Hartman Jr., president of the National Corn Growers Association, expressed hope that the talks could preserve this critical trading relationship. Trump’s tariff strategy, while aggressive, appears calculated to strengthen his legal and negotiating position, according to trade expert William Reinsch.
